Economists use the concept of price elasticity of demand to measure how much:
A) sellers respond to changes in the price of the good
B) worse off consumers are when the price of the good rises
C) demand responds to changes in buyers' incomes
D
D) buyers respond to changes in the price of the good

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much buyers change their level of demand in response to changes in the price of a good. It shows the sensitivity of consumers to changes in price and helps businesses determine how much they can raise prices before losing sales.

Economists Use the Concept of Price Elasticity of Demand to Measure